Zimbabwe’s energy regulator plans to introduce competitive bidding for power projects from 2026. The announcement coincides with plans to open Zimbabwe’s electricity retail market to private companies, which can sell and distribute electricity from next year.
The Zimbabwe Energy Regulatory Authority (ZERA) is set to introduce a competitive bidding system for electricity procurement projects.
The development aims to move away from unsolicited bids, also known as proposals made by companies without invitation, replacing a tender system.
Speaking at the Zimbabwe Economic Development Conference in September, ZERA Chief Executive Officer Edington Mazambani revealed that there had been a wave of unsolicited bids. His speech, available on the authority’s social media channels, added that competitive bidding processes are expected to begin next year, to give the sector sufficient time to adapt.
“The shift from unsolicited bidding will ensure that we have transparency, ensure cost efficiency and are expected to reduce electricity tariffs, and we will have high quality projects,” Mazambani said. “We have a lot of people who want to get a permit for speculative reasons, and they are holding on to a permit and kind of waving it around to get money. It will reinforce the government’s commitment to a fair investment environment.”
Mazambani promised that the authority will devise a regulatory framework for competitive bidding that welcomes both local and international investors, provides reasonable returns to these investors and rewards those who are efficient operators.
ZERA’s announcement follows policy changes approved by the Zimbabwean government earlier in September to open up the country’s electricity retail sector to private players. From early next year, private companies will participate in the sale and distribution of electricity, a role previously fulfilled solely by the state-owned Zimbabwe Electricity Transmission and Distribution Company (ZEDTC).
Under the plans, ZEDTC will maintain its role in electricity transmission, but also provide substations and transmission lines for private use. Meanwhile, ZERA is tasked with ensuring that frameworks are in place to quickly roll out private sector participation, Mazambani said during his speech.
Zimbabwe currently has 203 MW of operational solar capacity, according to figures from the Africa Solar Industry Association (AFSIA). In March 2024, the government of Zimbabwe fell permits issued for 116 MW of solar projects.
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